Simple Interest
Math MCQs

Question :    What amount does Linda have to pay after 5 years if he takes a loan of $3350 at 3% simple interest?

Correct Answer  $3852.5

Solution & Explanation

Solution

Given,

Principal (P) = $3350

Rate of Simple Interest (SI) = 3%

Time (t) = 5 years

Thus, Amount (A) = ?

The Rate of Interest is always calculated per annum, i.e. per year.

Thus, here 3% simple interest means, Rate of Simple Interest (SI) is 3% per annum.

Method (1) Using Formula

Calculation of Simple Interest

Formula to Calculate Simple Interest

Simple Interest (SI) = Principal × Rate × Time

Thus, Simple Interest (SI) = $3350 × 3% × 5

= $3350 ׳/₁₀₀ × 5

= ^{3350 × 3 × 5}/₁₀₀

= ^{10050 × 5}/₁₀₀

= ⁵⁰²⁵⁰/₁₀₀

= $502.5

Thus, Simple Interest = $502.5

Calculation of Amount

The total money paid to the lender by a borrower is called the Amount.

In other words, sum of priciple and interest is called the Amount.

Formula to Calculate the Amount

Amount = Principal + Interest

Thus, Amount = $3350 + $502.5

= $3852.5

Thus, Amount to be paid = $3852.5 Answer

Method (2)

Calculation of Amount when Principal, Rate of Simple Interest and Time are given

Calculation of Amount directly using Principal, SI, and Time

Formula to calculate the Amount

Amount (A) = Principal (P) + Principal(P) × Rate of Interest (SI) × Time (t)

⇒ A = P + PRT

Here in the question, P = $3350

Rate of Simple Interest (SI) or (R) = 3%

And, Time (t) = 5 years

Thus, Amount (A)

= $3350 + ($3350 × 3% × 5)

= $3350 + ($3350 ׳/₁₀₀ × 5)

= $3350 + (^{3350 × 3 × 5}/₁₀₀)

= $3350 + (^{10050 × 5}/₁₀₀)

= $3350 + (⁵⁰²⁵⁰/₁₀₀)

= $3350 + $502.5 = $3852.5

Thus, Amount (A) to be paid = $3852.5 Answer

Method (3) Unitary Method

Calculation of Amount using Unitary Method

Calculation of Interest using Unitary Method

Here, given Rate of Simple Interest = 3%

This, means, $3 per $100 per year

∵ For $100, the simple interest for 1 year = $3

∴ For $1, the simple interest for 1 year = ³/₁₀₀

∴ For $3350, the simple interest in 1 year

= ³/₁₀₀ × 3350

= ^{3 × 3350}/₁₀₀

= ¹⁰⁰⁵⁰/₁₀₀ = $100.5

Thus, simple interest for 1 year = $100.5

Therefore, simple interest for 5 years

= Simple interest for 1 year × 5

= $100.5 × 5 = $502.5

Thus, Simple Interest (SI) = $502.5

Calculation of Amount

Amount = Principal + Interest

Thus, Amount = $3350 + $502.5

= $3852.5

Thus, Amount to be paid = $3852.5 Answer

Similar Questions

(1) What amount does Joseph have to pay after 5 years if he takes a loan of $3700 at 5% simple interest?

(2) If Ashley paid $5460 to settle his loan which he had taken 4 years before at a simple interest of 5%, then find the loan taken.

(3) How much loan did Joseph borrow 5 years ago at a rate of simple interest 4% per annum, if he paid $6840 to clear it?

(4) Daniel had to pay $4469 in order to furnish the loan taken 3 years before. If the rate of simple interest was 3% then find the sum borrowed.

(5) Calculate the amount due after 10 years if Robert borrowed a sum of $5100 at a rate of 4% simple interest.

(6) Calculate the amount due after 10 years if Barbara borrowed a sum of $5550 at a rate of 8% simple interest.

(7) Elizabeth took a loan of $4900 at the rate of 7% simple interest per annum. If he paid an amount of $6958 to clear the loan, then find the time period of the loan.

(8) What amount does Susan have to pay after 5 years if he takes a loan of $3650 at 4% simple interest?

(9) Elizabeth took a loan of $4900 at the rate of 7% simple interest per annum. If he paid an amount of $7987 to clear the loan, then find the time period of the loan.

(10) Calculate the amount due after 10 years if Elizabeth borrowed a sum of $5450 at a rate of 2% simple interest.